📈 SEC LIFTS OPTIONS LIMIT – BLACKROCK COMES OUT ON TOP
On July 29, 2025, the SEC approved an increase in options position limits for spot Bitcoin ETFs from 25,000 to 250,000 contracts, expanding the scope for institutional derivatives trading. This marks a major step in integrating crypto into traditional finance.
🚀 IBIT firmly in control
iShares Bitcoin Trust (IBIT) leads the pack with $85.5B in AUM, over 4x that of Fidelity's FBTC. Its average daily Bitcoin options volume exceeds $2.35B, outpacing even CME’s Bitcoin futures market. FBTC was excluded from the new limit, further solidifying BlackRock’s near-monopoly advantage.
🔧 Operational efficiency improves
The SEC also approved in-kind creation/redemption, allowing ETF shares to be issued or redeemed in actual Bitcoin instead of cash. This reduces costs, increases transparency, and boosts arbitrage efficiency for large players.
📉 Market impact
Strategies like covered call selling help institutions hedge risk and generate yield — part of the reason Bitcoin volatility has declined over the past 12 months. Since launch, Bitcoin ETFs have attracted over $50B, with more than $1B in inflows last week alone — largely into IBIT.
💬 Positive sentiment
Crypto communities on X are calling this a major milestone, boosting institutional demand while positioning IBIT as the “gold standard” for crypto ETFs.
🔮 Outlook
If the Fed cuts rates and Trump is re-elected on a pro-crypto platform, Bitcoin could reach $150,000 within 3–6 months. Longer term, this may open the door to options on Ethereum ETFs, expanding crypto derivatives into a multi-trillion-dollar market.
📌 Bottom line: This is a clear bullish signal, with BlackRock leading the charge. Still, risks remain if the market becomes too reliant on one entity — or if options trading is abused during volatile conditions.
